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Randgold Resources (RRS)

  Print      Mail a friend       Annual reports

Thursday 05 May, 2005

Randgold Resources

Q1 results ended March 2005

Randgold Resources Ld
05 May 2005

Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD

*  Strong year on year improvement in operating results
*  Net profit of US$12 million for the quarter
*  Loulo approaches Phase 1 commissioning
*  Significant growth in attributable resources on the back of Loulo deep
*  Exploration defines new targets in Senegal and Burkina Faso


                   Unaudited    Unaudited    Unaudited
                     quarter      quarter      quarter
                       ended        ended        ended
                      31 Mar       31 Dec       31 Mar
US$000                  2005         2004         2004

Gold sales revenue    31 986       33 675       15 274
Cost of sales
Production costs      10 839        9 457        8 768
Transport and refinery
  costs                   67           93           52
Transfer from/(to)
  deferred stripping     209          307       (2 388)
Cash operating costs* 11 115        9 857        6 432
Royalties              2 162        2 499        1 079
Total cash costs*     13 277       12 356        7 511
Profit from mining
  activity*           18 709       21 319        7 763
Depreciation and
  amortisation         2 595        1 871        2 421
Exploration and
  expenditure          5 536        4 739        3 016
Profit from
  operations*         10 578       14 709        2 326
Interest received        325          269          292
Interest expense        (345)        (349)        (465)
Gain/(loss) on
  financial instruments    -          680       (5 847)
Other income and
  (expenses)           1 850          363       (1 174)
Share-based payments(S) (288)        (288)        (172)
Profit on ordinary
  activities before
  taxes and minority
  interests           12 120       15 384       (5 040)
Income tax                 -            -            -
Minority shareholders'
  interest                 -            -            -
Net profit/(loss)     12 120       15 384       (5 040)
Basic earnings per
  share (US$)           0.20         0.26(S)     (0.09)+(S)
Fully diluted earnings
  per share (US$)       0.20         0.25(S)     (0.09)+(S)
Average shares in
  issue (000)         59 394       59 212       58 524

The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).

*  Refer to other financial measures provided on page 3.

+  Reflects adjustments resulting from sub-division of shares.

(S)  Reflects adoption of IFRS 2: Share-based payment.


                            Unaudited       Unaudited
                             3 months        3 months
                                ended           ended
                               31 Mar          31 Mar
US$000                           2005            2004
Profit/(loss) on ordinary
  activities before taxation
  and minority interest        12 120          (5 040)(S)
Adjustment for non-cash items   3 220           7 740(S)
Working capital changes       (18 557)         (2 136)
Net cash (utilised)/generated
  from operations              (3 217)            564
Net cash utilised in investing
  activities                  (21 116)         (8 479)
Net cash generated by
  financing activities
   Ordinary shares issued         547              13
   Movement on financial
     instruments                    -          (1 308)
   Increase/(decrease) in
     long-term borrowings      14 972            (381)
   Increase in bank overdraft       -             185
Net decrease in cash and cash
  equivalents                  (8 814)         (9 406)
Cash and cash equivalents
  at beginning of period       78 240         105 475
Cash and cash equivalents
  at end of period             69 426          96 069

(S)  Reflects adoption of IFRS 2: Share-based payment.


                    Unaudited     Audited   Unaudited
                    at 31 Mar   at 31 Dec   at 31 Mar
US$000                   2005        2004        2004

Non-current assets
Property, plant
  and equipment       148 375     129 854      78 874
Cost                  172 755     151 639     183 668
Accumulated depreciation
  and amortisation    (24 380)    (21 785)   (104 794)
Deferred stripping
  costs                 8 394       8 514       7 488
Long-term ore
  stockpiles           16 857      12 054       8 203
Total non-current
  assets              173 626     150 422      94 565
Current assets
Deferred stripping
  costs                 6 281       6 370       5 602
Inventories and
  stockpiles            8 658       9 762       8 341
Receivables            33 549      23 667      14 219
Cash and equivalents** 69 426      78 240      99 957
Total current assets  117 914     118 039     128 119
Total assets          291 540     268 461     222 684
Total shareholders'
  equity              205 814     191 169     172 332
Non-current liabilities
Long-term borrowings   55 798      40 718       7 487
Loans from minority
  shareholders in
  subsidiaries          1 498       1 621         958
Deferred financial
  liabilities          13 978      15 668      13 027
Provision for environmental
  rehabilitation        3 829       3 701       5 946
Total non-current
  liabilities          75 103      61 708      27 418
Current liabilities
Accounts payable and
  accrued liabilities  10 623      15 584      21 199
Bank overdraft              -           -       1 735
Total current
  liabilities          10 623      15 584      22 934
Total equity and
  liabilities         291 540     268 461     222 684

**  Note:  These amounts include US$3 888 at 31 March 2004 which relate to the
N.M. Rothschild & Sons Limited debt service reserve account.


                       Number     Share         Share
                  of ordinary   capital       premium
                       shares    US$000        US$000
Balance -
  31 Dec 2003      29 260 385     2 926       200 244
Jan - Mar 2004
Net loss                    -         -             -
Share-based payments        -         -             -
Movement on cash
  flow hedges               -         -             -
Share options
  exercised             3 000         -            13
Balance -
  31 Mar 2004      29 263 385     2 926       200 257
Balance -
  31 Dec 2004      59 226 694     2 961       102 342
Jan - Mar 2005
Net profit                  -         -             -
Share-based payments        -         -             -
Movement on cash
  flow hedges               -         -             -
Share options
  exercised           176 800         9           538
Balance -
  31 Mar 2005      59 403 494     2 970       102 880


                         Other  Accumulated         Total
                      reserves     profits         equity
                        US$000      US$000         US$000
Balance - 31 Dec 2003   (7 403)    (18 580)       177 187
Jan - Mar 2004
Net loss                     -      (5 040)(S)     (5 040)(S)
Share-based payments       172(S)        -            172(S)
Movement on cash flow
  hedges                     -           -              -
Share options exercised      -           -             13
Balance - 31 Mar 2004   (7 231)(S)   (23 620)(S)  172 332
Balance - 31 Dec 2004  (14 747)(S)   100 613(S)   191 169
Jan - Mar 2005
Net profit                   -        12 120       12 120
Share-based payments       288(S)          -          288(S)
Movement on cash flow
  hedges                 1 690             -        1 690
Share options exercised      -             -          547
Balance - 31 Mar 2005  (12 769)      112 733      205 814

*  Share split:  A special resolution was passed on 26 April 2004 to divide each
of the ordinary shares of US$0.10 in the company into two ordinary shares of
US$0.05 each.

*  Capital reduction:  A special resolution was passed at the Annual General
Meeting in April 2004, which was subsequently approved by the Court in Jersey,
to extinguish accumulated losses by reducing the company's share premium account
by US$100 million in order to permit future dividend payments.


The company uses the following pro forma disclosures as it believes that this
information is relevant to the mining industry.

Total cash costs per ounce are calculated by dividing total cash costs, as
determined using the Gold Institute Industry Standard, by gold ounces produced
for all periods presented.

Total cash costs, as defined in the Gold Institute Industry Standard, includes
mine production, transport and refinery costs, general and administrative costs,
movement in production inventories and ore stockpile, transfers to and from
deferred stripping and royalties.  Total cash cost per ounce should not be
considered by investors as an alternative to operating profit or net profit
attributable to shareholders, as an alternative to other IFRS or US GAAP
measures or an indicator of the company's performance.  The company believes
that total cash cost per ounce is a useful indicator to investors and management
of a mining company's performance as it provides an indication of a company's
profitability and efficiency, the trends in costs as the company's operations
mature, a measure of a company's gross margin per ounce, by comparison of total
cash cost per ounce to the spot price of gold, and a benchmark of performance to
allow for comparison against other companies.

Cash operating costs are defined as total cash costs excluding royalties.

Total cash operating costs per ounce are calculated by dividing cash operating
costs by gold ounces produced for all periods presented.

Profit from mining activity is calculated by subtracting total cash costs from
gold sales revenue for all periods presented.

Profit from operations is calculated by subtracting depreciation and
amortisation charges and exploration and corporate expenditure from profit from
mining activity.


The preliminary condensed financial statements presented in this report have
been prepared in accordance with International Financial Reporting Standards
(IFRS), which differ in certain significant respects from Generally Accepted
Accounting Principles in the United States (US GAAP).  The effect of applying US
GAAP to net income and shareholders' equity is set out in the following table:

                                3 months     3 months
Reconciliation of net income      31 Mar       31 Mar
(US$000)                            2005         2004
Net income under IFRS             12 120       (5 040)(S)
Change in accounting principle,
  net of tax (adoption of IFRS 2)    288          172
Share option compensation
  adjustment                        (979)       1 022
Development costs*                (1 431)           -
Net income under US GAAP           9 998       (3 846)
Movement in cash flow hedges
  during the period                1 690            -
Comprehensive income under
  US GAAP                         11 688       (3 846)
Basic earnings per share under
  US GAAP (US$)                     0.17        (0.07)+
Fully diluted earnings per share
  under US GAAP (US$)               0.16        (0.07)+
Reconciliation of shareholders'
  equity (US$000)
Shareholders' equity under IFRS  205 814      172 332
Shareholders' equity under
  US GAAP                        205 814      172 332
Roll forward of shareholders'
  equity under US GAAP (US$000)
Balance as at 1 January 2005     191 169      177 187
Net income under US GAAP           9 998       (3 846)
Movement on cash flow hedges       1 690            -
Share options exercised              547           13
Share option compensation
  adjustment                         979       (1 022)
Development costs*                 1 431            -
Shareholders' equity under
  US GAAP at 31 March 2005       205 814      172 332

+  Reflects adjustments resulting from sub-division of shares.

*  Drilling costs of US$1.4 million relating to the underground development
study at Loulo have been capitalised under IFRS.  Under US GAAP, these costs may
not be capitalised since they do not relate to the addition of reserves as
defined in SEC Industry Guide 7.

(S)  Reflects adoption of IFRS 2: Share-based payment.


The preliminary condensed financial statements in this report have been prepared
in accordance with the group's accounting policies, which are in terms of IFRS
and are consistent with the prior period.

The consolidated financial information includes the quarterly financial
statements of the company, its subsidiaries and the Morila joint venture, which
comply with IAS 34.

Joint ventures are those investments in which the group has joint control and
are accounted for under the proportional consolidation method.  Under this
method, the proportion of assets, liabilities, income and expenses and cash
flows of each joint venture attributable to the group are incorporated in the
consolidated financial statements under appropriate headings.  Inter-company
accounts and transactions are eliminated on consolidation.

No segmental information has been provided, as the source and nature of the
enterprise's risks and returns are not governed by more than one segment.

The group adopted IFRS 2, accounting for share-based payment from 1 January
2005, in accordance with the standard's transitional provisions.  The standard
requires an entity to recognise share-based payment transactions in its
financial statements.  The comparatives have been adjusted accordingly.  The
effect of the change is a charge of US$0.3 million in the current quarter and a
charge of US$0.9 million for the year ending 31 December 2004.


No further hedging has been carried out this quarter.

The group's hedging position which all relates to the Loulo Project financing,
remains as follows:

                     Forward sales   Forward sales
Maturity date               ounces    price US$/oz
December 2005               12 504             430
December 2006               93 498             431
December 2007              103 500             435
December 2008               80 498             431
December 2009               75 000             430
Total                      365 000             432

This represents approximately 36% of planned production at Loulo for the period
that the project finance is in place.  The financial instruments are a matched
hedge and any movements in marked-to-market valuation are accounted for in the
other comprehensive income reserve.

Morila's production is completely exposed to spot gold prices.


Profit from mining activity for the current quarter of US$18.7 million was
substantially up from the corresponding quarter in 2004 and down US$2.6 million
from the previous quarter.  This was mainly as a result of a decrease in
throughput this quarter and the high grades mined last quarter, partially offset
by higher gold prices achieved at US$428/oz compared to US$410/oz.

Production costs include an accounting adjustment which arises from ounces
produced but not sold at the end of the fourth quarter 2004.  Related revenues
and costs have been brought into this quarter's results in line with our
accounting policy. The costs incurred in the quarter, before this adjustment,
are in line with the previous quarter.

Net profit for the current quarter of US$12.1 million compares favourably to the
US$20.1 million reported for the entire 2004 year.

Depreciation of US$2.6 million for the current quarter reflects an increase over
the previous quarter's US$1.9 million due to asset adjustments made at Morila
which affected the December 2004 quarter.

Exploration and corporate expenditure is higher than usual in the quarter due to
extensive drilling and the payment of annual bonuses.

The other income of US$1.9 million in the current quarter reflects the
correction of previous misallocations at Morila.

The main balance sheet movements for the quarter ended 31 March 2005 are
increases in property, plant and equipment, which represents the costs incurred
on the development of the Loulo Mine, and increased receivables which is mainly
due to payments in advance relating to the Loulo construction contract.

The decrease in cash and equivalents is attributable to the funding of the Loulo
Project.  Increases in long-term borrowings results from the draw down in the
quarter of US$15 million from the Loulo Project loan.  US$10 million remains to
be drawn.

The decrease in accounts payable and accrued liabilities results from the
reversal of Morila provisions which are no longer required.

The financial instruments liability decreased to US$14 million which reflects
the marked-to-market valuation of the hedged ounces at 31 March 2005 at a spot
price of US$428/oz.

Working capital changes on the cashflow statement reflect an increase in advance
payments related to the Loulo construction contract, as well as a sharp decrease
in the Morila payables.


Gold production for the quarter at Morila slightly exceeded that planned and
amounted to 167 272 ounces at a total cash cost of US$198/oz.  Plant throughput
was disappointing and the total for the quarter was 857 000 tonnes, far short of
the design capacity of the upgraded plant's 350 000 tonnes per month.  Plant
throughput was constrained by operational issues exacerbated by mechanical
failures as well as the planned re-lining and repairs of the SAG mill.  This was
ameliorated by the throughput of higher than planned grades.  We have been
assured by the operator that no significant negative impact will be caused to
the value of the operation by the early throughput of these higher than planned
grades.  Our senior management is working with our partners, AngloGold Ashanti
to understand and address the issues of returning the plant to full production
capacity.  A strong focus is also being maintained on controlling costs.

Morila results
                       Quarter     Quarter     Quarter
                         ended       ended       ended
                        31 Mar      31 Mar      31 Dec
US$000                    2005        2004        2004
Tonnes mined (000)       7 815       6 605       7 820
Ore tonnes mined (000)   1 646         887       2 209
Tonnes processed (000)     857         795       1 012
Head grade milled (g/t)    6.6         4.9         7.5
Recovery (%)              92.4        86.0        92.6
Ounces produced        167 272     107 115     226 679
Average price received
  (US$/oz)                 428         369         410
Cash operating costs*
  (US$/oz)                 166         160         109
Total cash costs* (US$/oz) 198         185         136
Cash profit (US$000)    46 773      19 408      53 298
Attributable (40%)
Ounces produced         66 908      42 846      90 672
Cash profit (US$000)    18 709       7 763      21 319

*  Refer to other financial measures provided on page 3.


Loulo Gold Mine Project

Construction continues apace with the arrival on site of the first ball mill.
The mill will be installed in position this month in line with the gold
production target of July.  Given the critical stage of the project, we have
taken over more of the detailed logistical and procurement management from our
main contractor at Loulo.  Material deliveries are now coming in steadily and
site manpower numbers have been increased to achieve our deadlines.  Freighting
of goods to site has become the critical path.  Plant steelwork erection is
progressing with the initial focus on Phase 1 oxide completion.  Current focus
is also on the construction earthworks programmes at the water storage dam and
the tailings storage facility, ahead of commissioning and the annual rains.
Preparations for the rainy season have commenced with the upgrading of the main
access road to the site.

With the start-up of mining operations last quarter and the build-up of our
operating personnel, the occupation of the permanent accommodation at the mine
village, as well as our mine offices has commenced.

On the operation side the ROM pad is still being constructed using waste
stripped from the Loulo 0 pit.  Mining focus will shift next month to the Yalea
pit to advance the mining of the soft ore at Yalea ahead of the plant
commissioning. Site clearing operations at Yalea are complete and the haul road
to the plant from Yalea is nearing completion.

Loulo Resource Update and Underground Development Study

The Yalea resource has been updated including all advanced grade control, infill
and deep drilling results to December 2004.  The total Yalea resource now stands
at 34.10Mt at 4.74g/t for 5.2 Moz, bringing the total Loulo resource to 8.04
Mozs.  The Yalea orebody was remodeled in agreement with SRK Consulting, better
delineating the high-grade area.  Underground mine design, planning and
scheduling is presently underway using the updated model and results of the
geotechnical studies.  Ore reserves have also increased at Loulo to 1.85 million
ounces, based on new US$375 pit designs.  Optimisation of the pit - underground
interface is currently underway.

At the same time deep drilling programmes to depths of 800 metres below surface
are in progress to further define the extent of the higher grade areas as well
as providing more information to assist with stope layout and design.

At Yalea, nine deep drillholes were completed of which three form part of a 10
drilhole programme extending over 1 000 metres of strike at depths between 500
metres and 800 metres below surface targeting the depth extent of the northern
deep high-grade zone.  These three drillholes confirmed the continuity of the
high-grade mineralised structure to a depth of 780 metres below surface albeit
thinner than shallower intersections.  These results confirm our model of an '
Obuasi style' dilationary payshoot geometry.

At Loulo 0, six deep drillholes were completed and confirmed the over-fold at
depth as well as indicating potential for the development of extensions to
existing payshoots.  Results from the north of the orebody have indicated the
presence of high-grade material with intercepts of L0CP54: 8 metres at 17.27g/t,
L0CP58: 4.95 metres at 11.35g/t and L0CP59: 9.87 metres at 7.54g/t being
obtained.  Further drilling is planned in this area to delineate the extent and
continuity of this high-grade material.

                          section    Grade     Selected
Hole ID   From      To   width (m)    (g/t)        unit*
YDH194  432.55  448.50       15.8     5.72      5.98m @
                                     10.45      4.55m @
YDH195  405.50  408.40       2.90
YDH226  437.50  464.27      26.77     2.74      8.05m @
YDH227  396.55  419.20      22.65     3.37     13.85m @
YDH196  596.00  625.50      29.50     3.46      3.20m @
YDH197  398.10  407.00       8.90     4.45      4.10m @
YDH198  433.08  437.07       3.99     1.68
        455.65  459.06       3.41     1.62
YDH192  788.00  794.00       6.00     4.62      1.00m @
        799.00  806.00       7.00     1.00      1.00m @
YDH193  765.64  770.43       4.79     3.17      0.83m @
YDH184  899.96  901.80       1.84     4.73      0.80m @
L0CP55  266.00  277.78      11.78     1.90
        277.78  284.04            dolerite
        284.04  295.53      11.49     2.10      2.08m @
L0CP56       -       -          -  Did not
L0CP57  340.12  342.44       2.32     1.51
        345.80  348.50       2.70     1.78
L0CP54  350.20  365.60      15.40     9.17      8.00m @
L0CP58  496.00  502.50       6.50     4.37      0.83m @
        520.20  525.15       4.95    11.35      1.62m @
L0CP59  533.00  542.87       9.87     7.54      3.08m @
L0CP61  619.06  627.00       7.94     2.43      5.00m @
L0CP60  605.94  621.20      15.26     2.91      3.20m @

*  Selection based on geology and grade

Results from the underground development study which is being led by SRK
Consulting are expected by the end of the June quarter.

Tongon Project

A new agreement has been reached by all parties involved in the Cote d'Ivoire
conflict.  Whilst awaiting implementation of the agreement, we will continue to
monitor the situation and are currently updating the prefeasibility work carried
out to date with a view to rapid commencement of exploration and feasibility
activities when the situation allows.


During the quarter exploration activities advanced on all project areas
throughout both West and East Africa.

At Loulo five drill rigs were in operation, three diamond core rigs testing the
orebodies of Yalea and Loulo 0, an RC rig completing advanced grade control and
a RAB rig testing targets within the resource triangle.  In addition to the
resource conversion and underground development drilling a dedicated brownfields
exploration team has been established to better focus on the upside potential of
not only the permit but the whole of the Kedougou - Kenieba Inlier, covering
Western Mali and Eastern Senegal.

In the north of the permit further work was carried out at PQ10 North, Far North
West and Baboto West with trenching, pitting, mapping and follow-up RAB underway
to test the potential of these targets.  Results have returned up to 40 metre
wide zones of plus 100ppb anomalism surrounding mineralised intersections of 6
metres at 3g/t. In the south of the permit, geological validation and ground
truthing is in progress at Faraba, where trenching along a 4 kilometre soil
anomaly has returned 24 metres at 4.32g/t and 26 metres at 3.34g/t. These
results are associated with north-south gossanous shears.  At P64 previous
drilling returned 28 metres at 3.20g/t and 35.50 metres at 8.85g/t coincident
with a folded and faulted quartz tourmaline unit, which has similarities to
Loulo 0.  On the Selou permit, south of the exploitation lease, work has
identified multiple north-south shears coincident with a 1.8 kilometre soil
anomaly.  Rock chip samples have returned values up to 40.6g/t and RAB drilling
is currently in progress.

In southern Mali at Morila, exploration has concentrated around the pit with
infill drilling in the Morila Shear Zone Extension now providing the necessary
data for a full resource estimate, pit optimisation and detailed mine plan.
Further drilling has enhanced and better defined the Samacline target, while a
permit scale exploration initiative is underway to identify additional drill
targets.  In the Morila region a generative study has highlighted several target
areas with the potential for flat lying bedding/foliation, similar to Morila.
However a lack of outcrop and therefore structural data results in large gaps in
the understanding of the area and a programme of diamond drilling will commence

In Senegal, six targets out of a total of 32 have now been the subject of
reconnaissance drilling and have intersected an array of different styles of
mineralisation from shear zone, through quartz vein type to intrusive related.
The most advanced of these targets is Sofia where gold mineralisation has been
confirmed over a strike of 3 400 metres. Mineralisation locates within a wide
hydrothermally altered shear zone at the contact with a highly magnetic
ultramafic unit.  The broad mineralised zone is up to 44 metres in width with
drill hole intercepts from six metres at 9.5g/t to 44 metres at 2g/t.

In Burkina Faso, a three hole reconnaissance diamond drilling programme has been
completed along a two kilometre segment of an overall 4.5 kilometre northeast
trending mineralised structure within the Kiaka permit.   Results from the
southern part indicate a thin mineralised zone albeit with moderate to high
grades.  To the north, where the zone is open along strike, we have outlined a
broad zone with generally a lower tenor of mineralisation.  Further
reconnaissance drilling is planned to explore the three kilometres still

In Ghana, the Adansi Asaasi joint venture was terminated and efforts continue on
a generative study of the country to identify areas of interest for permit
applications, joint ventures and/or acquisitions.

In Tanzania, reconnaissance exploration has concentrated on understanding the
geology and structural architecture of both the Mara and Musoma Greenstone
Belts.  Previously work has focused on former colonial mines and known gold
showings which, in the majority of cases are narrow quartz vein systems.  The
surface regolith cover is complex with transported laterites, stripped profiles,
recent lake sediments and volcanic ash which all impact on surface exploration.
We are focussing on identifying the key geological features in the mineralising
environment and ensuring that our exploration remains guided by these.


Annual ore resources have increased significantly year on year and total
attributable resources now stand at 10.02 million ounces in the measured,
indicated and inferred categories compared with 7.95 million ounces as at the
end of 2003.  The major contributor to this increase has been at Loulo where
deep drilling of the underground extensions to the Yalea orebody has led to a
total resource inventory increase from 5.32 million ounces to a total of 8.04
million ounces this year.  Exploration at Morila was also successful in
partially replacing ore depleted by mining.

Ore reserves have increased at Loulo from the 1.42 million ounces announced last
year to a total of 1.85 million ounces and of this, proved ore reserves amount
to 88% of the total.

Annual Resource and Reserve declaration (at 31 December 2004)

                        Tonnes  Grade   Gold  able Gold
Category                   (Mt)  (g/t) (Mozs)     (Mozs)
Mineral Resources
Measured and Indicated   29.28   3.20   3.01       1.20
Inferred                  4.47   3.79   0.54       0.22
Measured, Indicated and
  Inferred               33.75   3.28   3.55       1.42
Measured and Indicated   23.34   3.95   4.21       3.37
Inferred                 26.31   4.53   3.83       3.06
Measured, Indicated and
  Inferred               59.48   4.20   8.04       6.43
Inferred                 34.00   2.65   2.89       2.17
Total Resources
Measured and Indicated   52.62   4.27   7.22       4.57
Inferred                 64.79   3.49   7.27       5.45
Measured, Indicated and
  Inferred              117.41   3.84  14.49      10.02
Ore Reserves
Proved and Probable      25.79   3.11   2.58       1.03
Proved and Probable      15.18   3.78   1.85       1.48
Total Ore Reserves
Proved and Probable      40.97   3.36   4.42       2.51

*  Randgold Resources reports its mineral resources and ore reserves in
accordance with the JORC code.  The reporting of ore reserves is also in
accordance with Industry Guide 7.

*  Reserves are calculated at a gold price of US$375/oz.

*  Dilution and ore loss are incorporated into the calculation of reserves.

*  Cautionary note to US investors: The United States Securities and Exchange
Commission (the 'SEC') permits mining companies, in their filings with the SEC,
to disclose only those mineral deposits that a company can economically and
legally extract or produce.  We use certain terms in this annual report, such as
'resources' that the SEC guidelines strictly prohibit us from including in our
filings with the SEC.


The company remains on track to achieve its announced production targets.  It is
well-funded to complete the capital project at Loulo and invest in its future
growth.  Whilst production of first gold at Loulo is an important milestone, the
successful commissioning of both oxide and sulphide phases of the project and
production ramp-up to design throughput, remain our key focus for the next three
quarters.  The company continues to evaluate various opportunities both at
corporate and project levels, however it remains focused on generating its own
opportunities through an aggressive exploration and generative programme,
concentrating on Africa's key gold belts.

D M Bristow                 R A Williams
Chief Executive             Financial Director

5 May 2005

Registered office:  La Motte Chambers, La Motte Street, St Helier, Jersey JE1
1BJ, Channel Islands


Registrars: Computershare Investor Services (Channel Islands) Limited, PO Box
83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands

Transfer agents:  Computershare Services plc, PO Box 663, 7th Floor, Jupiter
House, Triton Court, 14 Finsbury Square, London EC2A 1BR

Investor and media relations:  For further information contact Kathy du Plessis
on Telephone +27 (11) 728-4701, Fax +27 (11) 728-2547, e-mail:

DISCLAIMER:  Statements made in this document with respect to Randgold
Resources' current plans, estimates, strategies and beliefs and other statements
that are not historical facts are forward-looking statements about the future
performance of Randgold Resources.  These statements are based on management's
assumptions and beliefs in light of the information currently available to it.
Randgold Resources cautions you that a number of important risks and
uncertainties could cause actual results to differ materially from those
discussed in the forward-looking statements, and therefore you should not place
undue reliance on them.  The potential risks and uncertainties include, among
others, risks associated with: fluctuations in the market price of gold, gold
production at Morila, the development of Loulo and estimates of resources,
reserves and mine life.  For a discussion on such risk factors, refer to the
annual report on Form 20-F for the year ended 31 December 2003, which was filed
with the United States Securities and Exchange Commission (the 'SEC') on 30 June
2004.  Randgold Resources assumes no obligation to update information in this
release. Cautionary Note to US Investors: The SEC permits companies, in their
filings with the SEC, to disclose only proven and probable ore reserves.  We use
certain terms in this release, such as 'resources', that the SEC does not
recognise and strictly prohibits us from including in our filings with the SEC.
Investors are cautioned not to assume that all or any part of our resources will
ever be converted into reserves which qualify as 'proven and probable reserves'
for the purposes of the SEC's industry guide number 7.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                                                                           

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